The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each bottle purchased may reduce the consumption of vodka under which circumstance(s)?
A) Vodka is an inferior good.
B) Vodka is a normal good.
C) Vodka is an inferior good and the taxes collected from this tax are rebated to consumers.
D) Vodka is a normal good and the taxes collected from this tax are rebated to consumers.
E) both B and C
E
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Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.
As the price level falls
a. people will want to hold more money, so the interest rate rises. b. people will want to hold more money, so the interest rate falls. c. people will want to hold less money, so the interest rate falls. d. people will want to hold less money, so the interest rate rises.
If Risky, Riskier, and Riskiest Insurance decided to begin charging all of its auto insurance clients the same premium, what would eventually happen?
a. They would have only safe drivers. b. They would have only dangerous drivers. c. They would have an equal blend of safe and dangerous drivers. d. They would have only medium-risk drivers.
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? Exhibit 3-8 presents supply and demand data for the video game market. If the price of video games was currently $70, there would be an ____________ of ______________ video games in this market.
A. excess demand; 450 B. excess demand; 500 C. excess supply; 400 D. excess supply; 850